Neon boosts production with new Californian well

Junior explorer
Neon Energy
has started production at a new well at its North San Ardo oil field in California, boosting output at the venture by 95 per cent.

The Lombardi 15-27H well at the field is producing at a rate of 230 barrels per day, after being brought on line just 14 days after drilling started, according to the company.

Neon managing director Ken Charsinsky said the results from the drilling have endorsed the company’s strategy to allocated capital to near-term expansion activities, especially while drilling continues to be relatively inexpensive and oil prices remain high.

The company has identified additional drilling sites and is now planning an additional horizontal development well on the northern side of the field in the near future.

That, together with a steam generator that was commissioned in July should “materially augment" Neon’s production rates in the near term, Mr Charsinsky said.